STOCKHOLM (AP) -- Talks between the Swedish government and Ford-owned Volvo Cars about guarantees for a euro200 million ($266 million) loan were postponed pending a sale of the Swedish brand, state officials said Thursday.
Joran Hagglund, a senior official at Sweden's Ministry of Enterprise, said this may indicate a sale of Volvo Cars is due sooner than previously expected.
"Ford is in a quite intensive sales process right now and that isn't consistent with the government's more long term perspective," he told The Associated Press. "We will continue when there is a new owner in place."
He refrained from making any further comments about the sales process.
Ford has said it is conducting a strategic review which could lead to a sale of Volvo Cars.
The European Investment Bank in March approved loans of euro200 million for Volvo Cars, subject to availability of a state guarantee. The loan was part of a bigger package to support European automakers' development of green technologies.
"We have had a constructive dialogue with the Swedish Government and they have been very supportive of Volvo Cars' business case all along," Volvo Cars Chief Executive Stephen Odell said in a statement.
However, he added Volvo was disappointed it couldn't come to an agreement with the government.
"Our competitors in other markets like Italy, Germany, France and U.K. have been able to utilize similar EIB loans which clearly give them competitive advantage during these difficult times," he said.
The Swedish government has previously declined to provide loan guarantees for General Motor's Saab unit, citing weak backing from the U.S. owners.
